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Providing Dedicated Europe-bound Shipping Space for SMEs Facing Logistical Challenges in the Red Sea

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- Securing 475 TEU per voyage and expanding space for long-term contracts by more than 10 times to 1,100 TEU



 The Ministry of Oceans and Fisheries (Minister Kang Do-Hyung) will be providing 400 TEU of dedicated shipping space each on vessels bound for Europe and Mediterranean routes while expanding total secured cargo space for long-term contracts to 1,100 TEU to support small and medium-sized enterprises (SMEs) facing import and export logistical challenges due to the rebel crisis in Yemen.


 Recent attacks by Yemeni Houthi rebels on civilian vessels navigating the Red Sea have caused logistical challenges for major domestic and international shipping lines, which have had to divert their routes to Cape Hope, South Africa. This has resulted in rising freight costs and logistical difficulties for Korean shipping firms. Immediately after the attacks, the Ministry of Oceans and Fisheries urgently organized an emergency import and export logistics response team, decided last week to deploy four temporary vessels* on European routes in consultation with the national flag carrier HMM, and has now taken measures to provide support for SMEs.


 * One 11,000 TEU-class vessel bound for North Europe and three 4,000-6,000 TEU-class vessels bound for the Mediterranean


 The ministerial support will ensure shipping space for loading of SME exports and guarantee stable freight rates via long-term contracts. SMEs seeking support can apply through the Gobiz Korea website (http://kr.gobizkorea.com) by selecting their desired routes and departure dates. For long-term contracts, the Korea International Trade Association and Korea SMEs and Startups Agency plan to accept applications through separate demand surveys.